Are These Violations of the ASHI Code of Ethics?

In this column, ASHI’s Ethics Committee addresses dilemmas faced by home inspectors.

By Jamison Brown, ASHI Ethics Committee Chair

Know the Code: The ASHI Code of Ethics can be found

at this link: www.homeinspector.org/Code-of-Ethics

Know the Standard of Practice: The ASHI Standard of Practice can be found at this link:

www.homeinspector.org/Standards-of-Practice

Jamison Brown is the owner of Home Inspections by Jamison & Company, Poquoson, VA. Before becoming an ASHI member in 1988, Jamison was a project manager, and supervised the construction and remodeling of more than 10,000 housing units for the U.S. Department of Defense (DoD) and the U.S. Department of Housing and Urban Development (HUD). Jamison is a former member of the Carpenters and Joiners of America, and a former licensed plumber in the state of Virginia. He is a member of the International Code Council, International Association of Electrical Inspectors (IAEI) and a certified member of the American Society of Home Inspectors (ASHI). He has been a member of ASHI’s Technical and Membership Committees, and was chair of the CEPP Committee. Currently, he chairs the ASHI Code of Ethics Committee. Jamison has personally inspected more than 18,000 residential and commercial properties. Contact him at jamison.brown@gmail.com.

QUESTIONS & INTERPRETATIONS

QUESTION: To participate in Contractor A’s $15 “processing fee,” a home inspector must provide what I believe to be confidential client information to Contractor A. Is it a violation of the ASHI Code of Ethics to provide this information to Contractor A, and is it also a violation to accept the $15 processing fee from Contractor A? Can a complaint be filed against an ASHI member for participating in Contractor A’s processing fee plan? RESPONSE: Accepting payment or other consideration from a party (in this case, Contractor A) in return for client information or special access to an inspector’s client for the purpose of marketing services to the client, such as being present during a home inspection for which a member is responsible, violates ASHI Code of Ethics Items 1B, 1E and 2C (see below). 1. Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity.

B. Inspectors shall not inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the sale of a property.

E. Inspectors shall not accept compensation, directly or indirectly, for recommending contractors, services, or products to inspection clients or other parties having an interest in inspected properties. 2. Inspectors shall act in good faith toward each client and other interested parties.

C. Inspectors shall not disclose inspection results or client information without client approval. QUESTION: Is it an ethical violation to be tied to a brokerage by a marketing agreement, and get substantial, if not exclusive, access to the inspection business from that brokerage due to implied loyalties or other inescapable bias, even if there is no preferred vendor list or similar written arrangement? RESPONSE: Advertising or marketing with real estate brokers is a clear violation of Item 1.C of the Code of Ethics (see below), if such marketing includes an explicit or tacit agreement to refer real estate clients to the inspector, by printed list of preferred inspectors, or by any other means. In comparison, advertising or marketing with real estate brokers that does not include a written or quidpro-quo agreement for referrals does not violate any specific provisions of the Code. Nonetheless, such joint marketing ventures may appear to compromise professional independence, objectivity or inspection integrity, and should be undertaken with caution. Home inspection clients should be able to have confidence that their inspector is not being influenced by the interests of the real estate agency for the transaction.

1. Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity.

C. Inspectors shall not directly or indirectly compensate realty agents, or other parties having a financial interest in closing or settlement of real estate transactions, for the referral of inspections or for inclusion on a list of recommended inspectors, preferred providers, or similar arrangements. QUESTION: In light of Item 1 of the Code of Ethics, “Inspectors shall avoid … activities that … appear to compromise professional independence,” is it acceptable to work in my local area to encourage other inspectors not to use pricing as a competitive tool, but to rely on their professionalism to sell their services? I would not try to set prices, but I would try to influence others in the profession through educational efforts such as our chapter magazine. RESPONSE: The provision of the Code addressing professional independence (Item 1) does not really apply to your question. In the context of the Code, professional independence means freedom from the improper influence of the inspector, caused by potential conflicts of interest that could result in a lack of objectivity or inspection integrity. Item 3 of the ASHI Code of Ethics states, “Inspectors shall avoid activities that may harm the public, discredit themselves, or reduce public confidence in the profession.” There are many dos and don’ts regarding when and how competitors can generally discuss pricing of services. These guidelines are beyond the purview of the Code of Ethics Committee. An improper discussion can result in substantial penalties. Therefore, unless legal advice is obtained, such discussions are discouraged, despite the best of intentions.

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